[probablypower]

This is kind of on the right track, but not correct.

The breakdown varies wildly depending on which electrical market you're in, and where in that market you're physically located. The price you pay is mostly a combination of:

- Wholesale energy prices set by multiple markets (week ahead, day ahead, balancing) - Market fees (minimal) - TSO/ISO tariffs for running the transmission grid and any ancillary services, as well as grid maintenance and capital recovery - Similar DSO tariffs for the distribution grid - retail costs that represent the overhead of any electricity retailer that exists between you and the DSO - taxes and other fees depending on your state

In my country, the wholesale cost is approximately 60%, TSO and DSO fees are around 10-15% each, retail is around 5% and other fees and taxes make up the rest. My numbers are loose because it has been 4 years since I broke it all down last.

Your underlying point is right though, that richer people can afford to buy their own production to avoid most of these fees. The result being that poor people shoulder more of the cost.